Hoover Chapter 7 Bankruptcy Lawyer
Filing for Chapter 7 Bankruptcy in Jefferson County
Also known as “liquidation bankruptcy,” Chapter 7 bankruptcy offers an option for relief for those struggling with insurmountable debts. If you are unable to pay your debts, you may be able to have them discharged through a Chapter 7 bankruptcy. Unlike Chapter 13 bankruptcies, a Chapter 7 bankruptcy does not require you to repay your debts; however, it may result in the loss of certain properties and/or assets.
At Pleasant Legal Solutions, we help clients throughout Jefferson County understand their options when it comes to debt relief and filing for bankruptcy. Our Hoover Chapter 7 bankruptcy lawyer has extensive experience and has handled over 1,000 cases. She understands the challenges you are facing and can help you find an ideal solution based on your unique situation.
For a free initial consultation, call (205) 736-8984 or contact us online today.
What Is Chapter 7 Bankruptcy?
Chapter 7 is a type of bankruptcy that allows you to discharge certain debts, meaning you are not responsible for repaying them. How this works is a bankruptcy trustee assigned to your case collects and sells your nonexempt properties and assets. The proceeds from the sale of those items are then used to pay your creditors. This means that you will likely lose some—if not all—of your nonexempt assets under the Bankruptcy Code when you file for Chapter 7.
Examples of nonexempt assets under the Bankruptcy Code include:
- Non-primary residence properties, such as vacation homes
- Vehicles, especially those that were recently purchased
- Non-retirement account investments
- Valuables, such as artwork, musical instruments, antiques, and jewelry
- Expensive clothing, shoes, handbags, etc.
The Bankruptcy Code also outlines exempt assets, which you are allowed to keep when you file for Chapter 7 bankruptcy. Examples of exempt assets include your primary residence, older or inexpensive vehicles, everyday clothing, everyday furniture, retirement accounts, and items you use for work.
Chapter 7 bankruptcy offers certain advantages to those struggling with significant debts.
Some of these advantages include:
- An immediate end to creditor collections and harassment
- Discharge of debts, without a repayment requirement
- The ability to keep your home and primary vehicle (in most cases)
- Future loan eligibility, often soon after filing for Chapter 7
Chapter 7 bankruptcy is also a relatively fast process. In most cases, Chapter 7 bankruptcies are resolved within a few months up to one year from the filing date.
Perhaps most beneficial of all, filing for Chapter 7 offers you a fresh financial start. Though it is not without its drawbacks, filing for bankruptcy in general can provide much-needed relief from creditor harassment and collections processes. It gives you the opportunity to get out from under massive debts and regain financial freedom.
Chapter 7 Bankruptcy Eligibility
Much like with Chapter 13, you must meet certain eligibility requirements to file for Chapter 7 bankruptcy. Notably, you must pass a “means test,” which is designed to assess whether you truly need to file for Chapter 7 bankruptcy or whether you have alternative options. The test does this by calculating your “disposable income,” or the income you have left over after paying certain monthly expenses, such as your mortgage or rent payments. If your disposable income is too high, you will likely be ineligible for Chapter 7.
In addition to passing the means test, you must also be either an individual, a corporation, a partnership, or a business entity. You cannot file for Chapter 7 if you had a prior bankruptcy petition dismissed within the past 180 days, and you must receive credit counseling from an approved agency no more than 180 days prior to filing for Chapter 7 bankruptcy.
To learn more about the eligibility requirements and how to file, contact our Hoover Chapter 7 bankruptcy attorney today for a free consultation.
What Are The Differences Between Chapter 7 and Chapter 13 Bankruptcy?
The differences between Chapter 7 and Chapter 13 bankruptcy can be summarized as follows:
- Eligibility: Chapter 7 bankruptcy is typically for individuals or businesses without the means to repay their debts, while Chapter 13 bankruptcy is available to individuals with a regular income.
- Debt Discharge: In Chapter 7 bankruptcy, debts are often discharged, meaning they are eliminated and no longer owed. In Chapter 13 bankruptcy, a repayment plan is created to partially or fully repay creditors over a specific period of time.
- Assets: Chapter 7 bankruptcy may involve the liquidation of non-exempt assets to repay creditors, while Chapter 13 bankruptcy allows individuals to keep their property and repay debts through a structured plan.
- Repayment Period: Chapter 7 bankruptcy is typically a quicker process, often completed within a few months. Chapter 13 bankruptcy involves a repayment plan lasting three to five years.
- Income Requirements: Chapter 7 bankruptcy does not require a minimum income level, while Chapter 13 bankruptcy requires a steady income to create a repayment plan.
- Credit Impact: Both types of bankruptcy will have a negative impact on credit scores, but Chapter 7 bankruptcy remains on a credit record for 10 years, while Chapter 13 bankruptcy stays for seven years.
How Our Chapter 7 Attorney Can Help
Dealing with significant debt is one of the most stressful situations a person can endure. At Pleasant Legal Solutions, we want you to know that relief is possible—and our team can help. We strive to make the process as easy as possible for you. We will explain your options in clear, easy-to-understand language and work to make sure you fully understand the various pros and cons of filing for Chapter 7 or another form of bankruptcy.
We can handle all the necessary paperwork and guide you through the process to help you avoid common mistakes. Our goal is to help you obtain the best possible outcome so that you can get back to living your life without the stress of insurmountable debt.
Contact Pleasant Legal Solutions online or call (205) 736-8984 to set up a free initial consultation with Attorney Jeanetta Pleasant today.
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